This bill proposes to amend current statutes regarding the assessment of licensed insurers by the Director of the Department of Insurance and Financial Institutions (DIFI) for the operation of the Fraud Unit. Under the current law, the maximum annual assessment is set at $1,050, which would be increased to $1,350 if the bill becomes law. The funds collected from this assessment are designated for the administration and prosecution of insurance fraud and are deposited into the Fraud Unit Assessment Fund. Additionally, the bill includes provisions that make the changes retroactive to June 30, 2026, and it contains a Proposition 108 clause, which requires a two-thirds majority vote in both houses of the legislature for the act to take effect. The amended statute will ensure that the increased assessment is applied consistently and effectively to support the Fraud Unit's operations.

Statutes affected:
Introduced Version: 20-466